This document explores state-level involvement in the governance of postsecondary education, particularly in those states which use coordinating boards to govern their institutions. Rising enrollments and costs of the 1960's, concern with more effective resource use in the 1970's, and the influence of federal aid programs have combined to accelerate the degree of state control of local institutions. While little firm evidence exists to substantiate the value of such control, the advantages and disadvantages of increased centralization and control are strongly argued by partisans on both sides. State control is exercised through the budget process, program management, and planning--functions that are shared, albeit unequally, by the governor, the legislature, and coordinating agencies, each with conflicting and overlapping authority and powers. The trend toward state control shows no sign of abating, and, if unchecked, it will further circumscribe the autonomy of colleges and universities. Attempts to bring about change will require accurate identification of the role of each agency of state government in the coordination/control process, agreement on essential elements of institutional and local autonomy, reversal of the trend toward increased state control or stabilization of the status quo, simplification of current state control mechanisms, and promotion of institutional autonomy within multi-unit systems. A bibliography is attached. (JDS)